IPART has completed its review of maximum fares for rural and regional bus services from 2018. We were also asked to provide advice to the NSW Government on the development of on-demand services in rural and regional areas of NSW.

We have released a Final Report setting out proposing substantial reductions in rural and regional bus fares to encourage greater use of public transport.

Fares will take effect from 5 March 2018.

How

We used an approach for setting fares that places significant weight on people’s willingness and capacity to pay for the services. We assessed this by examining a range of evidence - including feedback from surveys and stakeholder submissions, comparisons of the current fares with those in metropolitan NSW and bordering jurisdictions, and analysis of the expected elasticity of travel with respect to fares. We also had regard to the other matters we were required to consider in our letter of referral, including the need for greater efficiency in the supply of services and issues related to travel across borders.

Where

This review covered all areas of NSW except the Sydney metropolitan and outer areas (Newcastle, Wollongong, part of the Hunter region and Blue Mountains).

Who

This review affects people who may use bus services provided by private operators under contracts with the NSW Government in rural and regional areas.